MERRILL
LYNCH
BASIC VALUE
FUND, INC.
FUND LOGO
Quarterly Report September 30, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Fund
unless accompanied or preceded by the Fund's current
prospectus. Past performance results shown in this report
should not be considered a representation of future
performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost.
Merrill Lynch
Basic Value Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
<PAGE>
MERRILL LYNCH BASIC VALUE FUND, INC.
TO OUR SHAREHOLDERS
Concerns of increasing inflationary pressures continued to
prompt volatility in the US stock and bond markets during
the September quarter. In addition, the weakness of the US
dollar in foreign exchange markets prolonged stock and
bond market declines during July. While the immediate concerns
regarding the US dollar had diminished by late July, the
possibility of continued tightening by the Federal Reserve Board
persisted for most of the period. However, a lower-than-expected
rate of growth reported for the US economy during the second
calendar quarter allayed inflationary concerns to some degree,
despite the fifth increase in short-term interest rates made by
the central bank in mid-August. Inflationary expectations
surfaced again with the announcement of significant upward
revisions in industrial production and capacity utilization
for the May-July period. When the central bank did not raise
short-term interest rates at the late September Federal Open
Market Committee meeting, financial markets rallied on the
expectation that the US economy was not overheating and
therefore significant further monetary policy tightening
would not be necessary.
Despite the stronger-than-expected industrial production results,
other economic data suggest that while the economic recovery is
continuing, it is losing some momentum. Consumer spending is
increasing, but at a relatively slow pace, and existing home
sales may have peaked. Inflation remains subdued at the retail
level. In the industrial sector, the sharp increase in
manufacturing production in August was largely the result of a
strong increase in motor vehicle assemblies, which may level off
in the weeks ahead. On balance, it appears that the growth in US
industry is progressing at a steady, modest rate.
Despite evidence of a moderating trend in the US economy,
Chairman Greenspan indicated in his July Humphrey-Hawkins
testimony that the central bank would prefer to err on the side
of too much monetary tightening rather than too little. In the
weeks ahead, investors will continue to assess economic data and
inflationary trends in order to gauge whether further increases
in short-term interest rates are imminent. Continued indications
of moderate and sustainable levels of economic growth would be
positive for the US capital markets.
<PAGE>
Portfolio Matters
Security purchases in the quarter ended September 30, 1994
amounted to $131 million while equity sales totaled $99 million.
New assets invested in the Fund during the period totaled $61
million. At quarter-end, the Fund's cash position was approxi-
mately 19%, about the same level as the beginning of the
quarter.
There were no new additions to, or deletions from, the portfolio
during the September quarter (Kmart Corp. Pfd. P was redeemed),
and our trading activity, modest by recent standards, was focused
entirely on existing positions. In all, we increased holdings in
18 stocks while reducing commitments in eight issues.
The largest increase during the September quarter was in Deere &
Co., which is now our fourth largest holding. The stock has been
under pressure since hitting a peak in excess of $90 a share in
the first quarter of 1994, despite worthwhile earnings progress
and an unexpected dividend increase. Down over 20% from its high
and selling at ten times fiscal 1994's earnings estimate and at
about nine times fiscal 1995's projection, we believe it provides
excellent value and a favorable risk/reward potential.
We continued to build the Atlantic Richfield Co. and GTE Corp.
holdings which were new purchases in the June quarter, and we
also significantly increased the Chevron Corp. position. With the
increase in Atlantic Richfield Co. and Chevron Corp., the overall
energy-related holdings exceeded 14% of net assets, our largest
industry commitment.
On the sell side, we substantially reduced our position in ITT
Corp. from about a 3% portfolio weighting to a 2% holding. At
the end of June, the stock was our second largest holding and
is now the ninth largest. This company, in partnership with
Cablevision Systems Corp., agreed to acquire Madison Square
Garden from Viacom Inc. for what we consider an excessive
price. Also, there has been conjecture that ITT Corp. is
interested in bidding for NBC, which General Electric Co.
has up for sale. Thus, it appears that ITT Corp. is interested
in pursuing truly long-term growth at the possible expense of
nearby earnings progress. Accordingly, while we still feel
the stock has favorable long-term potential, we are more
comfortable at a 2% holding rather than 3%. Finally, the accom-
plished sales provided us with a 50% profit.
<PAGE>
We also sold a major portion of Lockheed Corp. following the
run-up on the announcement of its intention to merge with
Martin Marietta Corp. The last major sale in the September
quarter was an approximate 25% reduction in Union Carbide Corp.
at a better than 100% gain. We had initially purchased this stock
when it was controversial and unpopular. The company has delivered
excellent performance, and the stock now has fairly broad
sponsorship. We felt it prudent to secure profits as the stock
rose.
In Conclusion
At the end of 1992 our cash position was 8%. Since then, cash
increased to about 20% of net assets in September of 1993 and has
remained in that general area since as we have been espousing
caution and stressing historically high valuation levels.
The stock market averages continue to mask a high degree of
overall volatility and underlying weakness. One study shows that
42% of all stocks have corrected 20% or more from their 52-week
highs.
As always your Fund's portfolio remains undervalued, with a gross
yield of 3.5% for the Fund's average common stock holding
compared with 2.5% for the Standard & Poor's 500 Composite
average and a price/earnings ratio of 14 times estimated 1994
profits compared with 18 times for the S&P 500. Also the price/book
value ratio for the average Fund holding, 1.65 times, is less than
half that of the overall stock market.
Thank you for your investment in Merrill Lynch Basic Value Fund,
Inc., and we look forward to reviewing our outlook and strategy
with you again in our upcoming semi-annual report to
shareholders.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Paul M. Hofmann)
Paul M. Hoffmann
Vice President and Portfolio Manager
October 10, 1994
<PAGE>
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Executive Vice President
Donald C. Burke, Vice President
Paul M. Hoffmann, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
National Westminster Bank NJ
10 Exchange Place
Jersey City, New Jersey 07302
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
PERFORMANCE DATA
None of the past results shown should be considered a
representation of future performance. Investment return
and principal value of Class A and Class B Shares will fluctuate
so that shares, when redeemed, may be worth more or less than
their original cost. "Results of a $1,000 Investment Since Inception"
chart below measures performance since inception and may not reflect
results of investments made at any other time.
Results of a $1,000 Investment Since Inception--Class A Shares
GRAPHIC MATERIAL APPEARS HERE.
SEE APPENDIX GRAPHIC AND IMAGE MATERIAL ITEM 1.
<PAGE>
<TABLE>
Recent Performance Results
<CAPTION>
12 Month 3 Month
9/30/94 6/30/94 9/30/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Basic Value Fund Class A Shares* $23.04 $23.17 $23.71 + 1.19%(1) +2.41%(2)
ML Basic Value Fund Class B Shares* 22.78 22.87 23.47 + 1.11(1) +2.61(2)
Dow Jones Industrial Average** 3,843.19 3,624.96 3,555.12 + 8.10 +6.02
Standard & Poor's 500 Index** 462.69 444.27 458.93 + 0.82 +4.15
ML Basic Value Fund Class A Shares--Total Return* + 4.01(3) +3.85(4)
ML Basic Value Fund Class B Shares--Total Return* + 2.96(5) +3.58(6)
Dow Jones Industrial Average--Total Return** +11.07 +6.74
Standard & Poor's 500 Index--Total Return** + 3.70 +4.92
<FN>
(1)Percent change includes reinvestment of $0.943 per share capital gains distributions.
(2)Percent change includes reinvestment of $0.685 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.651 per share ordinary income dividends and
$0.943 per share capital gains distributions.
(4)Percent change includes reinvestment of $0.333 per share ordinary income dividends and
$0.685 per share capital gains distributions.
(5)Percent change includes reinvestment of $0.426 per share ordinary income dividends and
$0.943 per share capital gains distributions.
(6)Percent change includes reinvestment of $0.222 per share ordinary income dividends and
$0.685 per share capital gains distributions.
*Investment results shown do not reflect sales charges; results shown would be lower if
a sales charge was included.
**An unmanaged broad-based index comprised of common stocks. Total investment returns for
unmanaged indexes are based on estimates.
</TABLE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
7/1/77-12/31/77 $ 9.60 $ 9.91 -- -- + 3.23%
1978 9.91 9.61 $ 0.270 $ 0.490 + 4.65
1979 9.61 11.46 0.460 0.550 +31.24
1980 11.46 12.46 0.940 0.600 +23.92
1981 12.46 10.62 1.370 0.690 + 1.12
1982 10.62 12.28 0.310 0.680 +28.25
1983 12.28 14.31 0.920 0.610 +30.52
1984 14.31 13.38 1.130 0.680 + 7.08
1985 13.38 15.79 1.020 0.640 +32.17
1986 15.79 17.06 0.860 0.580 +17.86
1987 17.06 15.75 1.338 0.973 + 4.36
1988 15.75 17.90 0.655 0.749 +22.73
1989 17.90 19.94 0.226 0.872 +17.54
1990 19.94 16.09 0.303 0.969 -13.07
1991 16.09 19.36 0.272 0.772 +27.23
1992 19.36 20.34 0.325 0.680 +10.36
1993 20.34 23.37 0.726 0.702 +22.16
1/1/94-9/30/94 23.37 23.04 0.685 0.333 + 2.96
------- -------
Total $11.810 Total $11.570
Cumulative total return as of 9/30/94: +1,046.53%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do
not include sales charge; results would be lower if sales charge
was included.
</TABLE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88-12/31/88 $18.79 $17.89 $0.352 $0.361 - 0.96%
1989 17.89 19.83 0.226 0.756 +16.33
1990 19.83 16.01 0.303 0.781 -13.92
1991 16.01 19.25 0.272 0.583 +25.91
1992 19.25 20.21 0.325 0.481 + 9.24
1993 20.21 23.19 0.726 0.484 +20.93
1/1/94-9/30/94 23.19 22.78 0.685 0.222 + 2.16
------ ------
Total $2.889 Total $3.668
Cumulative total return as of 9/30/94: +68.50%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains distributions
at net asset value on the ex-dividend date, and do not reflect deduction of
any sales charge; results would be lower if sales charge was deducted.
</TABLE>
<PAGE>
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 9/30/94 + 4.01% - 2.75%
Five Years Ended 9/30/94 + 8.53 + 7.08
Ten Years Ended 9/30/94 +14.09 +13.33
[FN]
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 9/30/94 +2.96% -0.92%
Five Years Ended 9/30/94 +7.41 +7.41
Inception (10/21/88)
through 9/30/94 +9.17 +9.17
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced
to 0% after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Percent of
Industry Held Stocks Cost Value Net Assets
Discount from Book Value
<S> <C> <S> <C> <C> <C>
Metals/Non-Ferrous 1,400,000 ASARCO Inc. $ 35,255,430 $ 46,025,000 1.1%
Insurance 800,000 Aetna Life & Casualty Co. 35,195,218 37,100,000 0.9
Savings & Loans 1,850,000 Ahmanson (H.F.) & Co. 32,200,305 38,618,750 0.9
Insurance 260,000 American National Insurance Co. 9,749,442 12,285,000 0.3
Insurance 600,000 CIGNA Corp. 31,341,428 36,975,000 0.9
Insurance 1,200,000 The Continental Corp. 35,209,839 16,200,000 0.4
Utilities--Electric 1,000,000 Entergy Corp. 19,799,508 23,250,000 0.5
-------------- -------------- --------
198,751,170 210,453,750 5.0
<PAGE>
<CAPTION>
Below-Average Price/Earnings Ratio
<S> <C> <S> <C> <C> <C>
Insurance 600,000 The Allstate Corp. 16,316,532 14,325,000 0.3
Insurance 2,000,000 American General Corp. 34,620,231 54,250,000 1.3
Steel 1,100,000 Bethlehem Steel Corp. 14,479,722 23,100,000 0.6
Banking 1,570,000 The Chase Manhattan Corp. 35,345,175 54,361,250 1.3
Banking 2,200,000 Citicorp 53,771,262 93,500,000 2.2
Financial Services 800,000 Dean Witter, Discover & Co. 20,456,508 30,100,000 0.7
Farm & Construction
Equipment 1,600,000 Deere & Co. 86,587,573 109,800,000 2.6
Retail 850,000 Federated Department Stores, Inc. 11,478,475 19,550,000 0.5
Banking 1,150,000 First Interstate Bancorp 53,035,168 93,293,750 2.2
Automotive 2,100,000 Ford Motor Co. 42,728,208 58,275,000 1.4
Automotive 1,400,000 General Motors Corp. 61,081,803 65,625,000 1.6
Conglomerates 1,050,000 ITT Corp. 49,592,052 87,543,750 2.1
Information Processing 1,450,000 International Business Machines Corp. 91,919,846 100,775,000 2.4
Aerospace & Defense 200,000 Lockheed Corp. 6,827,150 13,925,000 0.3
Pharmaceutical 2,000,000 Merck & Co., Inc. 63,465,898 71,000,000 1.7
Hospital Management 1,500,000 National Medical Enterprises, Inc. 15,860,263 25,687,500 0.6
Semiconductors 1,200,000 National Semiconductor Corp. 12,091,780 18,750,000 0.4
Banking 1,650,000 NationsBank Corp. 68,590,392 80,850,000 1.9
Banking 1,800,000 Norwest Corp. 20,939,972 44,550,000 1.1
Insurance 1,400,000 PartnerRe Holdings Ltd. 29,498,937 30,100,000 0.7
Electrical Equipment 2,800,000 Philips Electronics N.V. 50,735,011 85,050,000 2.0
Retail 3,100,000 Sears, Roebuck & Co. 114,099,842 148,800,000 3.5
Information Processing 2,200,000 Tandem Computers Inc. 26,902,529 35,750,000 0.9
Telecommunications 1,280,000 Telefonica de Espana, S.A. (ADR)* 37,922,666 51,840,000 1.2
Insurance 1,600,000 Travelers Inc. 62,743,469 52,600,000 1.3
Steel 800,000 USX-US Steel Group 21,961,346 33,500,000 0.8
Information Processing 3,300,000 Unisys Corp. 39,601,470 35,475,000 0.8
Aerospace & Defense 450,000 United Technologies Corp. 22,695,049 28,181,250 0.7
Savings & Loans 1,000,000 Washington Mutual Savings Bank 15,851,362 20,375,000 0.5
Pharmaceuticals 440,000 Zeneca Group PLC (ADR)* 12,980,000 16,830,000 0.4
-------------- -------------- --------
1,194,179,691 1,597,762,500 38.0
<CAPTION>
Above-Average Yield
<S> <C> <S> <C> <C> <C>
Oil/Domestic 550,000 Atlantic Richfield Co. 54,877,750 55,481,250 1.3
Real Estate Investment
Trust 700,000 Avalon Properties, Inc. 14,548,710 14,787,500 0.4
Telecommunications 800,000 Bell Atlantic Corp. 33,212,901 42,400,000 1.0
Pharmaceutical 1,150,000 Bristol-Myers Squibb Co. 65,372,906 65,981,250 1.6
Oil--International 1,400,000 Chevron Corp. 42,750,374 58,275,000 1.4
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Industry Held Stocks Cost Value Net Assets
Above-Average Yield (concluded)
<S> <C> <S> <C> <C> <C>
Banking 700,000 Citicorp (Pfd. P) $ 10,325,000 $ 13,650,000 0.3%
Utilities--Electric 1,000,000 Consolidated Edison Co. of New York, Inc. 21,723,966 24,875,000 0.6
Utilities--Electric 637,500 DPL Inc. 6,204,369 12,431,250 0.3
Oil--International 700,000 Exxon Corp. 32,536,014 40,337,500 1.0
Telecommunications 2,000,000 GTE Corp. 62,898,314 60,750,000 1.4
Chemicals 400,000 Imperial Chemical Industries PLC (ADR)* 25,771,805 20,900,000 0.5
Real Estate Investment
Trust 400,000 Irvine Apartment Communities, Inc. 7,075,747 7,150,000 0.2
Retail 2,900,000 Kmart Corp. 58,326,222 51,837,500 1.2
Real Estate Investment
Trust 700,000 Liberty Property Trust 14,155,230 13,912,500 0.3
Real Estate Investment
Trust 500,000 The Mills Corp. 11,734,125 10,750,000 0.3
Oil--International 1,500,000 Mobil Corp. 78,457,148 118,687,500 2.8
Utilities--Electric 850,000 NIPSCO Industries, Inc. 15,883,277 23,268,750 0.6
Oil--Domestic 2,100,000 Occidental Petroleum Corp. 43,860,194 44,100,000 1.1
Utilities--Electric 1,100,000 PECO Energy Co. 26,348,541 27,912,500 0.7
Tobacco 1,500,000 Philip Morris Cos. Inc. 80,845,984 91,687,500 2.2
Utilities--Electric 850,000 Public Service Enterprise Group Inc. 22,490,010 22,312,500 0.5
Aluminum 250,000 Reynolds Metals Co. (Pfd. P) 11,937,200 13,468,750 0.3
Oil--International 1,150,000 Royal Dutch Petroleum Co. 70,562,758 123,481,250 2.9
Real Estate Investment
Trust 1,130,000 Simon Property Group, Inc. 25,891,365 28,956,250 0.7
Real Estate Investment
Trust 500,000 Summit Properties Inc. 9,602,500 9,625,000 0.2
Oil--International 1,000,000 Texaco Inc. 53,689,121 60,000,000 1.4
Utilities--Electric 400,000 Texas Utilities Co. 13,696,291 13,050,000 0.3
Telecommunications 800,000 U.S. West, Inc. 22,413,677 31,000,000 0.7
-------------- -------------- --------
937,191,499 1,101,068,750 26.2
<PAGE>
<CAPTION>
Special Situations
<S> <C> <S> <C> <C> <C>
Oil--International 705,508 The British Petroleum Co. PLC (ADR)* 33,362,569 53,442,231 1.3
Information Processing 1,000,000 Ceridian Corp. 16,072,735 24,625,000 0.6
Information Processing 1,700,000 Data General Corp. 23,653,243 17,000,000 0.4
Information Processing 2,400,000 Digital Equipment Corp. 97,980,371 63,600,000 1.5
Oil Services &
Equipment 2,500,000 Dresser Industries, Inc. 49,131,722 50,625,000 1.2
Restaurants 770,800 Foodmaker, Inc. 9,587,860 4,432,100 0.1
Foods/Food Processing 1,100,000 General Mills, Inc. 60,039,860 63,525,000 1.5
Chemicals 500,000 Hercules Inc. 19,235,727 51,437,500 1.2
Machinery 675,000 Ingersoll-Rand Co. 13,619,766 23,878,125 0.5
Paper & Forest
Products 1,000,000 International Paper Co. 55,866,813 78,500,000 1.9
Aluminum 125,000 Reynolds Metals Co. 5,292,633 7,078,125 0.2
Chemicals 1,400,000 Union Carbide Corp. 23,492,066 47,600,000 1.1
-------------- -------------- --------
407,335,365 485,743,081 11.5
Total Stocks 2,737,457,725 3,395,028,081 80.7
<CAPTION>
Face
Amount Issue
Short-Term Securities
<S> <C> <S> <C> <C> <C>
Commercial Paper** ANZ (Delaware) Inc.:
$50,000,000 5.79% due 11/01/1994 49,787,111 49,787,111 1.2
50,000,000 4.85% due 11/04/1994 49,764,236 49,764,236 1.1
50,000,000 Bank One Diversified Services Corp.,
4.75% due 10/19/1994 49,874,653 49,874,653 1.2
50,000,000 Daimler-Benz AG, 4.73% due 10/12/1994 49,921,167 49,921,167 1.2
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Face Percent of
Amount Issue Cost Value Net Assets
Short-Term Securities (concluded)
<S> <C> <S> <C> <C> <C>
Commercial Paper** $50,000,000 du Pont (E.I.) de Nemours and Co.,
(concluded) 4.74% due 10/25/1994 $ 49,835,417 $ 49,835,417 1.2%
78,413,000 General Electric Capital Corp.,
4.95% due 10/03/1994 78,380,655 78,380,655 1.8
Matterhorn Capital Corp.:
50,000,000 4.73% due 10/11/1994 49,927,736 49,927,736 1.2
43,016,000 4.93% due 10/28/1994 42,851,058 42,851,058 1.0
National Australia Funding (Delaware), Inc.:
50,000,000 4.70% due 10/06/1994 49,960,833 49,960,833 1.2
50,000,000 4.76% due 10/25/1994 49,834,722 49,834,722 1.2
Nestle AG:
50,000,000 4.84% due 10/27/1994 49,818,500 49,818,500 1.2
50,000,000 4.86% due 11/03/1994 49,770,500 49,770,500 1.2
PHH Corp.:
30,000,000 4.73% due 10/07/1994 29,972,408 29,972,408 0.7
50,000,000 4.92% due 10/31/1994 49,788,167 49,788,167 1.2
50,000,000 Penney (J.C.) & Co., 4.75% due 10/26/1994 49,828,472 49,828,472 1.2
52,000,000 PepsiCo., Inc., 4.70% due 10/04/1994 51,972,844 51,972,844 1.2
Total Short-Term Securities 801,288,479 801,288,479 19.0
Total Investments $3,538,746,204 4,196,316,560 99.7
==============
Other Assets Less Liabilities 13,006,894 0.3
-------------- -------
Net Assets $4,209,323,454 100.0%
============== =======
<PAGE>
Net Asset Value: Class A--Based on net assets of $2,345,612,437 and 101,827,129 shares outstanding $ 23.04
==============
Class B--Based on net assets of $1,863,711,017 and 81,820,529 shares outstanding $ 22.78
==============
<FN>
*American Depositary Receipt (ADR).
**Commercial Paper is traded on a discount basis; the interest rates shown are the discount
rates paid at the time of purchase by the Fund.
</TABLE>
PORTFOLIO INFORMATION
Ten Largest Percent of
Stock Holdings Net Assets
Sears, Roebuck & Co. 3.5%
Royal Dutch Petroleum Co. 2.9
Mobil Corp. 2.8
Deere & Co. 2.6
International Business Machines Corp. 2.4
Citicorp 2.2
First Interstate Bancorp 2.2
Philip Morris Cos. Inc. 2.2
ITT Corp. 2.1
Philips Electronics N.V. 2.0
Portfolio Change for the Quarter
Ended September 30, 1994
Deletion
Kmart Corp. (Pfd. P)
<PAGE>
APPENDIX GRAPHIC AND IMAGE MATERIAL.
ITEM 1:
Results of a $1,000 Investment Since Inception--Class A Shares
(6.5% sales charge--$935 net amount invested; assuming
reinvestment of all dividends and capital gains districutions.)
A mountain chart depicting the growth of an investment in the
Fund's Class A Shares from $935 on July 1, 1977 to $10,720.06 on
September 30, 1994.
